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The Illinois Tax Amnesty Program, available from Oct. 1 through Nov. 17, 2025, provides taxpayers with a limited-time opportunity to resolve outstanding tax liabilities without penalties or interest, provided the taxes are paid in full within the amnesty period.
Eligibility
The program applies to any unpaid or unreported taxes collected by the Illinois Department of Revenue (e.g. income tax, sales/use tax, telecommunication taxes) for periods ending after June 30, 2018, and before July 1, 2024. Taxpayers must file an original return for non-filed periods or file an amended return to make corrections. Full payment of eligible liabilities must be remitted within the amnesty period, Oct. 1 through Nov. 17, 2025, to qualify for penalty and interest relief.
Note that taxpayers with liabilities limited solely to penalties and interest are not eligible to participate in the amnesty program.
Exclusions
The program does not waive or apply to:
- Taxes not administered by the Department (e.g., property, estate, franchise, insurance, and local taxes paid directly to the local government)
- Lien filing/release fees, books and records penalties, bad check penalties, collection agency fees, and certain penalty/interest charges
- Balances due for periods out of the eligible dates
- Motor fuel use tax
- Non-tax liabilities (e.g., licensing fees, permits, tire user fees, surcharges, and motor fuel violation penalties)
Key considerations
- Payment requirements – Full payments should be made through MyTax Illinois, credit card (for individual income taxes only), check, or money order. The Department recommends making separate payments for each tax liability, clearly identifying the tax type, tax period, and the amount being paid.
- Collection protocol – For liabilities referred to a private collection agency, payments must be directed to the assigned agency. Taxpayers should contact the collection agency directly to confirm the total amount due and follow the instructions provided in the amnesty notice.
- Audit and appeal cases – Taxpayers with ongoing audits or pending appeals must pay the full tax liability and, if applicable, withdraw protests to qualify for the amnesty program.
- Federal bankruptcy – Taxpayers under bankruptcy protection should consult the Department and obtain court approval before participating in the amnesty program.
What does CohnReznick think?
The Illinois Tax Amnesty Program will open in less than a month, providing taxpayers a limited window to resolve outstanding labilities without penalties or interest. We recommend reviewing your Illinois tax exposure now to assess whether participation is advantageous.
Bryan Hoesly
Director, National Tax - SALTJamie Kelly
Senior Manager, National Tax - SALTLooking for the full list of our dedicated professionals here at CohnReznick?
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Any advice contained in this communication, including attachments and enclosures, is not intended as a thorough, in-depth analysis of specific issues. Nor is it sufficient to avoid tax-related penalties. This has been prepared for information purposes and general guidance only and does not constitute legal or professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice specific to, among other things, your individual facts, circumstances and jurisdiction. No representation or warranty (express or implied) is made as to the accuracy or completeness of the information contained in this publication, and CohnReznick, its partners, employees and agents accept no liability, and disclaim all responsibility, for the consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.